NS&I limits investments
National Savings & Investments - changes to the terms of their Bonds
National Savings & Investments (NS&I) have announced a change to the terms of their Guaranteed Income Bonds and Guaranteed Growth Bonds.
Rather than a cut in interest rates in June, NS&I slashed the maximum investment in each issue from £1,000,000 to £10,000 – although the lower limit does not apply to those reinvesting maturing bonds.
The message is clear: NS&I or, more accurately, the Treasury does not want any more savers’ money. It is not that the government has stopped needing to borrow – far from it – but for now it is much cheaper and easier to sell government bonds (gilts) to institutional investors. Whereas the NS&I 3-year Guaranteed Income Bond pays 1.9%, the yield on a 3-year gilt is under 1% at the time of writing.
If NS&I’s change has hit your savings plans, talk to us about the other options still available.
The information in this article does not constitute advice and should be used for informational purposes only. This content has been provided to Helm Godfrey by Taxbriefs.